First Major Field Trial of Proflux Technology is a Significant Success

Oilflow Solutions announces the results of its first major field trial using its unique Proflux 200 technology.

Proflux 200, which has been proven in the laboratory to reduce the viscosity of low API (low specific gravity) heavy oil changing it from a thick and slow flowing liquid to a free flowing state, is the first of two new product systems being developed by Oilflow. The second product system, Proflux 300, stabilizes waxy crudes allowing them to be pumped well below their original pour point temperature.

The trial of Proflux 200 took place in Colombia in collaboration with the operator. The objective of this field trial was to test the Proflux 200 technology and engineering system on the combined 13 API heavy oil production from two wells by transporting it from the well site to the central processing station through a 4" flowline.

The Proflux technology exceeded expectations by not only successfully reducing the viscosity of the heavy oil produced from the wells, allowing it to flow freely, but also increasing the average production from the wells by 20%. When the oil reached the central processing station the Proflux 200 separated completely from the oil allowing it to be re-cycled. The flow lines and plant where also cleaned during the process which was an unexpected bonus.

Oilflow and the operator are now planning further tests involving both sub surface and surface applications.

Oilflow was recently formed by joint venture partners, Vienco Oil & Gas Ltd and AGT Energy Ltd to market a portfolio of new product systems which are targeted at flow optimisation of heavy and waxy crudes. Using Vienco's engineering and field management expertise and AGT's unique polymer based chemistry, Oilflow provides a complete solution for the production and transportation of heavy oil from sub surface to refinery which will lead to flow assurance from the world's most difficult reserves. This is an international market valued at $6 trillion.

Commenting on the success of the field trials in Colombia, Mike Crabtree, Managing Director, said:

" The success of this field trial is a major milestone in the company's development as it gives Proflux 200 a step change in credibility. Proflux is now elevated from a laboratory proposition to a credible field based solution. Further trials of the Proflux product systems will take place in India, Albania and Egypt by the end of 2005 and we are confident that this will lead to product commercialization by the end of the first quarter 2006."